Posts Tagged ‘fuel costs’

Lower fuel prices are providing a bonanza for American motorists, according to the AAA study.

You may be paying more for food and housing, but that trip to work is likely costing you less these days. In fact, driving costs have fallen to their lowest level in six years, according to an annual study by AAA.

The travel and road service firm estimates the average driver will spend $8,858 to own and operate the typical vehicle this year, a figure that works out to around 57 cents per mile. Credit goes to one particular factor, said AAA managing director John Nielsen.

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“Thanks to lower gas prices, American drivers can expect to save hundreds of dollars in fuel costs in 2016,” said Nielsen. “Fortunately, this annual savings more than offsets the moderate increases in maintenance, insurance, finance charges and other costs associated with owning and operating a vehicle.”

Tired of spending so much to keep your car running, gassed up and insured? If you’re looking to cut costs, you might consider moving to a place with wide-open spaces, according to a new study that ranks the best and worst states for drivers.

The new study also considers other factors like commute times, vehicle thefts and fatal crashes. All things considered, Idaho tops the chart according to research by financial website Bankrate.com, while Louisiana lands at the bottom of the list. With only a few exceptions, drivers will find life easier – and less expensive — in rural regions of the country, the study reveals.

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“Population density has a big effect on these rankings,” explained Chris Kahn, Bankrate.com’s research and statistics analyst. “The best states for drivers have lots of wide-open spaces, whereas the worst states tend to be filled with people and cars – a bad combination for drivers’ wallets.”

Gas prices may level off in the near future due to an expected halt to rising crude oil prices.

The price of gasoline increased again this week, rising to $2.66 per gallon, which is the highest average price of the year, according to AAA. But the increases might be coming to an end as the rally that has lifted the price of crude oil runs out of steam.

Drivers are paying about four cents more per gallon than one week ago and 27 cents more per gallon than one month ago. However, relatively low crude costs continue to translate to significant savings at the pump for consumers. The national average is about a dollar less than a year ago and is at the cheapest level for this date since 2009, AAA said.

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Month-over-month, the price has moved higher in every state and Washington, D.C. by a dime or more per gallon. Pump prices are up by a quarter or more in 22 states, with the largest monthly increases taking place in the western United States. Consumers in California at 61 cents per gallon, Nevada at 44 cents per gallon, Utah at 39 cents per gallon and Arizona at 39 cents have seen the largest increases over this period, due largely to the refinery issues in the region. (more…)

AAA says vehicle ownership costs are going to fall this year by 2% due in part to low fuel prices.

If you’ve gotten used to the idea that you’ll always be paying more – for housing, food, clothing – you may be in for a pleasant surprise when it comes to driving, as you can expect to pay about 2% less to operate your car this year.

Credit lower fuel costs and cut-rate car loans, according to the AAA’s annual “Your Driving Costs” study. Unfortunately, the survey also found that some other automotive expenses are expected to rise this year, notably including auto insurance, maintenance and tires. And if you’re planning to buy this year, AAA cautions that you’ll likely be getting less for that trade-in, which translates into higher depreciation costs.

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Nontheless, “Car owners can look forward to saving approximately $178 this year,” explained John Nielsen, AAA’s managing director of Automotive Engineering and Repair, and the savings will be even greater for those driving large, fuel-hungry vehicles such as minivans, pickups and SUVs, the AAA reported. (more…)

Gas prices have risen consistently for nearly three weeks in a row, according to AAA.

No, it’s not your imagination: prices at the pump have been on the rise for a while now. The average price of gasoline has moved higher for 19 consecutive days, adding some 23 cents per gallon due to higher crude oil costs and a number of refinery issues, according to AAA.

AAA pegged the average price across the country at $2.62 per gallon, which represents the most expensive average price of the year. Motorists are paying eight cents more per gallon than one week ago and 22 cents more than one month ago to refuel their vehicles.

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Although the national average is currently moving higher, relatively lower crude prices continue to provide consumers with significant year-over-year-savings and today’s price is $1.06 per gallon less than a year ago, AAA said. (more…)

They’re only hours apart – separated by a single state in-between, but when it comes to the cost of owning and operating a car, Wyoming and Iowa might as well be on different planets.

When you factor in such annual costs as gasoline, insurance and repairs, the typical Wyoming driver will spend about $2,705. In Iowa, the figure is a far more reasonable $1.942 annually, according to a new study by the financial services website Bankrate.com.

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The results of the new study might come as a surprise, particularly with relatively sparse Wyoming landing at the top of the list – above more urban states such as New York, New Jersey and California. In fact, the Golden State wound up closer to the middle of the list of 50 states and Washington, D.C. At an annual cost of $2,237, California motorists are laying out just slightly more than the $2,223 national average, according to the Bankrate study.

Running down the road in this Chevrolet Suburban will cost you about 30 cents a mile for fuel alone, more than four times the cost of operating a Toyota Prius.

Fuel prices have been riding the proverbial roller-coaster in recent months and that has more American motorists than ever focused on finding the most mileage-minded vehicles available that can fit their needs.

While it’s hard to find a manufacturer that hasn’t been pushing for improved fuel economy, there’s still a big gap between brands, according to a new study that finds the typical GMC product has, on average, the most costly products to operate in terms of fuel costs per mile. Parent General Motors, in fact, produces six of the ten most costly vehicles, according to a new study by tracking service GasBuddy.com.

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At the other extreme, Honda was the cheapest brand, at a cost of just 12.8 cents per mile compared to 21.2 cents for GMC.

Potential buyers should take caution before steering clear of any brand, however, and instead do an apples-to-apples comparison of similar products, cautioned GasBuddy’s senior analyst Patrick DeHaan, who noted, the brand-based costs “depend upon the manufacturer’s line-up.

It’s easy to feel miserable when it comes time to fill the tank, fuel prices again on a fast rise across much of the country. And automotive insurance costs have been going up quickly, as well.

But how much you pay can vary widely depending upon where you live. A gallon of regular unleaded that will cost you $3.16 in South Carolina this week goes for a dollar more in Illinois, according to the latest tracking information.

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Combine gas and insurance and drivers in some states can expect to pay as much as $2,000 more than their motoring cohorts in other parts of the country, according to the new Automotive Misery Index.

The new mileage standards appear to have solid public support -- especially as gas prices resume their upwards surge.

Bouncing back from an unexpected delay, the Obama Administration today formalized a more than 50% increase in federal automotive fuel economy standards.

Even with automakers struggling to meet the 2016 Corporate Average Fuel Economy, or CAFE, target of 35.5 miles per gallon, the industry will now face a 54.5 mpg goal for 2025. That figure is the result of extensive debate between industry, environmentalists and government regulators.

But there had been questions raised, earlier this month, when the White House unexpectedly delayed the release of the official rules. The 2025 CAFE proposal, like much of Pres. Barack Obama’s energy policy, had come under fire from a Republican party set to formalize Mitt Romney as its presidential nominee this week.

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“These fuel standards represent the single most important step we’ve ever taken to reduce our dependence on foreign oil,” the President declared in a statement accompany the release of the new mileage regulations.

Will all cars in 2025 have to use battery technology like the Infiniti Emerg-E concept?

A week after the EPA was expected to formalize its proposed 54.5 mpg mileage rules for 2025 it appears the Obama Administration could be months away from locking things down.

Despite the reluctant buy-in of most manufacturers there appears to still be some heated opposition to the Corporate Average Fuel Economy, or CAFE update – which would require the industry to increase mileage by about 50% over the already strict guidelines now in place for 2016.

“We expect the process to be completed soon,” an administration official says, though exactly when is uncertain.

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Few expect any major changes to the rules – which was hammered out after some bitter debate between the auto industry, auto unions, environmentalists and the Obama White House. Earlier proposals would have pushed the CAFE numbers well above 60 mpg. But with a few exceptions, everyone finally appeared to sign on once the compromise 54.5 mpg number was announced.